Can we save tax by expenses details?

POSTED BY Rishi Mehta ON August 14, 2012 2:26 pm COMMENTS (2)

Pl.consider this mail that I recieved to save tax:

If on a — SALARY OF 65000/-
SHOW 7000/- AS TRAVELLING EXPENSES
SHOW 3000/- AS BOOKS,LAUNDRY EXPENSES
SHOW 5000/-AS TELEPHONIC EXPENSES
SHOW 5000/- AS MISCELLANEOUS EXPENSES
SO IT IS A DEDUCTION OF 20000/- PER MONTH SO
YOUR SALARY NOW BECOMES 45000/- FOR TAX PURPOSES-
Now claim other deductions as well.

SO NET YOU HAVE SAVED TAX ON 20000/- per month .'( 2.40,000 per year)

Is it true that tax can be saved in this way ?
Is this trick only for Self employed or also for salaried employees?
Also how much maximum permissible in each category of expenses?
Which form is applicable -Form 16 or 16A?

2 replies on this article “Can we save tax by expenses details?”

  1. Ramesh says:

    Only for business income, you can do so. You need to check with your CA or tax advisor.

  2. BRSINGH says:

    For salaried employee i dont think so. It seems kind of a mail to confuse you.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.